GCL Integration (002506) First Coverage Report: Tier1 Tier 1 Component Suppliers Open Up and Down the Industry Chain

GCL Integration (002506) First Coverage Report: Tier1 Tier 1 Component Suppliers Open Up and Down the Industry Chain

Guide to this report: GCL Integration is a leading module supplier, benefiting from the global growth of photovoltaics, improving profitability by opening up upstream cells, and deploying overseas EPC business to create new growth poles.

Covered for the first time and given a “Neutral” rating.

Investment Highlights: Cover for the first time and give a “Neutral” rating.

It is expected that EPS for 2019-2021 will be 0.

007, 0.

02, 0.

03 yuan, because GCL has a unique technical route in the photovoltaic field, such as Xin single crystal, shingles, etc., and the layout of semiconductor recycling wafer projects, it is estimated that it should be higher than the average level of the power equipment industry, given in July 2019.

4x PB is reasonable with a target price of 6.

36 yuan.

Tier1 Tier 1 module supplier, benefiting from the global growth of photovoltaics.

Demand for photovoltaics has gradually shifted from domestic to overseas demand.

Against the backdrop of overseas demand, leading component companies will gain a competitive advantage, because overseas component sales rely heavily on bank support and project party certification. GCL ‘s integrated distributed volume ranks among the top ten in the world, and is ranked 杭州夜生活网 by “Bloomberg New Energy Finance” judge Tier1 Tier 1 component supplier, overseas sales are smooth, channels are widely spread, global brand influence is already available, overseas business transfer volume in the first half of 20191.

33GW, accounting for over 60%.

It is expected that in the future, photovoltaics will be driven by parity-driven growth worldwide, and the company will fully benefit.

The company’s products are diversified, with multiple / single / xin single crystals simultaneously.

Xin single crystal is an upgraded product of polycrystalline. In the first half of the year, 200MW was delivered overseas and 600MW was on hand.

Double-sided double-glass modules have nearly 300MW orders on hand; shingled products are popular overseas.

The construction of the industrial chain is progressing smoothly, and overseas EPC business may become a new growth pole.

GCL integrated Xuzhou Xinyu’s 3GW high-efficiency battery capacity has reached capacity, and Ma’anshan Qichen’s 500MW battery production base has also been successfully put into production. The company’s vertical integration from battery chips to modules is gradually progressing, which will help the company reduce its dependence on battery external procurement., It is beneficial to further reduce component costs and launch differentiated products.

It is expected that by the end of 2019, the company will be able to achieve a battery self-sufficiency rate of more than 60%.

PV overseas projects have gradually transformed into a PPA development model. The overall revenue increase is stable and controllable, with reasonable profit margins and cash flows. It is expected that overseas EPC business will become the development focus of the EPC sector.


The fourth quarter’s upward economic sentiment brought a rebound in prices.

risk warning.

Risks of overseas trade, uncertainty of semiconductor recycling wafers.

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